7. New Texas Insurance Deductible Law – Roof Damage Claims

Effective September 1st, 2019, a new Texas law took effect that meant significant changes for homeowners insurance claims and the storm restoration industry. For several decades, a law in Texas has made it unlawful not to pay your deductible in conjunction with a repair after receiving proceeds from an insurance claim.

The old Texas law that governed insurance deductible payments was somewhat vague, and the Texas courts had to recheck its validity back in the late 1980s. This most often involved shingle roof-related insurance claims storm sabotaged by hail or high winds in Texas. That led to many contractors proposing to absorb or waive the deductible so the homeowner would have no out-of-pocket cost in completing repairs in conjunction with an insurance claim. The deductible eating arrangement was an unfair practice all along. Contractors would mainly provide a false invoice or documentation that the total repair cost included the homeowner paying the entire deductible. Those activities have always technically constituted insurance fraud.

The Texas Congress passed the new law created by TX HB2102 and signed into law by Governor Greg Abbott to replace the old law effective 9/1/19. In no uncertain terms, the new law makes it a state crime to engage a contractor to have them waive, rebate, absorb, or any other method of helping a homeowner is not paying the deductible in conjunction with an insurance claim.